The Pension Committee of Croydon Council met on Tuesday 09 June 2026 to discuss the Fund's investments, funding position, and governance arrangements. Key topics included an update on the relationship with London CIV, the council's pension administration performance, the audit plan, and a review of breaches of the law and the risk register.

London CIV Update

The committee was scheduled to receive an update on the evolving relationship between the Croydon Pension Fund and London LGPS CIV Ltd (London CIV ). This update was to cover the contractual and governance arrangements being put in place by 30 June 2026, following the Fit for the Future reforms and the Pension Schemes Act 2026. The report also aimed to provide information on the Fund's pooling position as of 31 March 2026, including any cost savings achieved. Representatives from London CIV were expected to present a broader context on pooling, governance, performance, and responsible investment. The report noted that legislation enacted on 29 April 2026, with further regulations due on 30 June 2026, mandates that all Local Government Pension Scheme assets are managed through FCA-regulated asset pool companies, significantly altering the operating model for LGPS funds. The recommendation was for the committee to note the contents of this report.

Croydon Pensions Administration Team Key Performance Indicators and Pensions Dashboard Reporting

This report was scheduled to outline the Key Performance Indicators (KPIs) for the Croydon Pensions Administration Team for the period February 2026 to April 2026. These KPIs are measured against the legal requirements for administering the Local Government Pension Scheme (LGPS). The report was also to include information regarding the Pension Dashboard. Officers noted that the team had generally met targets for most indicators, with a few exceptions, particularly concerning deferred benefit calculations. Plans were in place to address older deferred benefit cases, which were noted as being more complex and affecting KPIs due to their longer open status. The report also detailed progress on recalculating pensions for the McCloud Remedy and the implementation of new LGPS regulations effective from 1 April 2026, which include changes to survivor benefits, gender pension gap reporting, and other amendments. The introduction of new regulations for Councillors and Mayors entering the LGPS from 11 May 2026 was also discussed, highlighting the potential for increased manual work. The report also provided an update on the Pensions Dashboard Programme, including initial testing phases and data cleansing efforts. The committee was asked to note the KPIs and performance against them.

The Audit Plan for the London Borough of Croydon Pension Fund

This report presented the Audit Plan for the London Borough of Croydon Pension Fund for the year ending 31 March 2026, as provided by Grant Thornton UK LLP. The plan was intended to provide an overview of the planned scope and timing of the statutory audit for those charged with governance. The report highlighted that local authorities administering pension funds are required to publish audited financial statements by 31 January 2027. Grant Thornton had been appointed by Public Sector Audit Appointments (PSAA) as the auditor for the London Borough of Croydon, including the audit of the Pension Fund's financial statements. The report detailed the planned audit procedures, including addressing significant risks such as management override of controls and the valuation of Level 3 investments. Materiality for the audit was set at £34 million, with lower specific materialities for contributions receivable and benefits payable. The committee was recommended to note the contents of the Audit Plan.

Governance Best Practice Compliance Statement

This report was scheduled to update the Governance Best Practice Compliance Statement for the committee's consideration. It aimed to set out the extent to which the Pension Fund's governance arrangements comply with guidance issued by the Secretary of State and, where they do not, provide reasons for non-compliance. The statement was to be reviewed annually, with consultation with relevant parties. The report highlighted three substantive changes made to the previous version of the statement, relating to Principle Ab (updated to reflect two appointments), Principle Ba(i) (updated to reflect an appointment), and Principle Ea (updated to reflect the current position). The committee was asked to review the draft statement.

Review of Breaches of the Law

This report presented the current Breaches of the Law log extract for the Pension Fund, highlighting any changes since the last review on 17 March 2026. The report detailed the legal requirements under the Pensions Act 2004 for reporting breaches of the law to The Pensions Regulator. A breach of the law was defined as a failure to comply with a duty relevant to the Fund's administration, imposed by legislation or rule of law, where such failure is likely to be of material significance to the Regulator. The extract showed 14 items reported to the committee, with no new entries, three removals due to age, and no updates. The committee was recommended to review and note the contents of the log extract.

Review of Risk Register

This report presented the current Risk Register for the Pension Fund, highlighting any changes since the last review on 17 March 2026. The register detailed relevant risk scenarios, their likelihood and impact, and proposed mitigations. The report indicated that there were 20 risks on the main register, with 13 identified as significant (scoring 10 or higher). It was noted that planned future controls could reduce the number of significant risks to 8. No new risks had been added since the previous review. The committee was recommended to review and note the contents of the register.

Progress Report for the Quarter Ended 31 March 2026

This report provided an update on the Fund's investments and current funding position for the quarter ending 31 March 2026. It covered four sections: performance against strategic goals, the asset allocation strategy and planned investments, risk management, and updates from recent investment manager meetings. The market value of the Fund's investments decreased by £27.4m over the quarter, with a return of -1.15%. Despite short-term market volatility, the Fund remained well-funded at 124%, with a surplus of £0.43bn. The report detailed the updated strategic asset allocation, including targets for Global Equities, Fixed Interest, and Alternatives such as Infrastructure, Private Equity, Private Debt, and Property. It also provided performance updates for various funds within these asset classes, noting that Global Equities and Fixed Interest experienced negative returns due to adverse market conditions. Infrastructure and Private Equity investments were noted as performing well over the longer term. The report also outlined the current cash holding and planned use for Private Debt allocation. The committee was recommended to note the contents of the report.

Local Government Pension Scheme Advisory Board / The Pensions Regulator Update

This report was intended to inform the committee of matters currently being considered by the Local Government Pension Scheme Advisory Board (SAB) and The Pensions Regulator (TPR) that are relevant to the Fund. It was noted that TPR's publications primarily concern private sector schemes, with no specific LGPS relevance in the last twelve months, but that the item on the Enforcement Strategy Consultation could affect the LGPS. The report detailed updates from the SAB regarding the government's response to the Fit for the Future technical consultation, the publication of the 2025 Scheme Annual Report, and statements on fiduciary duty, investment in conflict zones, and lobbying. It also provided information on the LGPS Code of Transparency data system, the Pension Schemes Act 2026, and the Access and Fairness consultation. The committee was recommended to note the contents of this report.

Exclusion of the Press and Public

A motion was to be moved and seconded to exclude the press and public from the remainder of the meeting for specific items of business. This was proposed on the grounds that these items involved the likely disclosure of exempt information, as defined in Part 1 of Schedule 12A of the Local Government Act 1972, and that the public interest in maintaining the exemption outweighed the public interest in disclosing the information.

Part B - Progress Report for Quarter Ended 31 March 2026

This section of the agenda indicated that further progress reports for the quarter ended 31 March 2026 would be discussed with the press and public excluded. This exclusion was based on the likely disclosure of exempt information relating to the financial or business affairs of particular persons.